-- Will round out QAD’s Integrated Supplier
Management portfolio, offering best-in-class capabilities to help
Procurement Organizations improve profitability --
QAD Inc. (Nasdaq: QADA) (Nasdaq: QADB), a leading provider of
adaptive, cloud-based enterprise software and services for global
manufacturing companies, today announced it entered into a
definitive agreement to acquire Allocation Network GmbH, a
best-in-class solution provider for strategic sourcing and supplier
management, based in Munich, Germany.
The acquisition, which is expected to close by the end of 2020,
will not have an immediate, material impact on QAD’s financial
results. The acquisition is in line with QAD’s strategy of
acquiring quality products with limited market reach and leveraging
QAD’s global footprint. The acquisition will support QAD’s cloud
growth within its existing customer base and strengthen its overall
product offering.
QAD will fully incorporate Allocation Network’s sourcing,
supplier management and procurement systems into its Integrated
Supplier Management portfolio to allow customers to eliminate
off-contract buying, increase purchasing power and boost cost
savings. In today’s world, where agility and flexibility in the
supply chain are increasingly critical, this powerful combination
will greatly enhance the agility and innovation companies are
seeking to dynamically manage their supplier communities while
delivering operational and financial efficiencies more quickly.
Allocation Network will operate as a division of QAD.
“We are excited and delighted to welcome Allocation Network to
QAD,” said QAD CEO Anton Chilton. “We see tremendous value in their
focus on direct sourcing and procurement, highly experienced team
and leadership, strong presence in manufacturing vertical segments,
and geographic location. Our company cultures are well matched,
focusing on the success of our customers and the welfare of our
employees.”
“This strategic acquisition enhances our ability to enable the
vision of the Adaptive Manufacturing Enterprise, extending our
capability in supplier management and supporting additional cloud
growth,” said Chilton. “Additionally, Allocation Network’s strong
presence in Germany provides us with an ideal position to continue
to address and support that country’s large automotive market.”
“The Allocation Network team is enthusiastic about joining QAD,”
said Allocation Network Managing Director Bernhard Soltmann.
“Allocation Network customers and employees will benefit from QAD’s
global presence, 24/7 support and portfolio of manufacturing ERP
and supply chain solutions. This acquisition will provide customers
the agility and innovation needed to rapidly respond to a complex
supplier environment while delivering operational and financial
efficiencies.”
Founded in 1998, Allocation Network is a best-of-breed solution
provider for strategic sourcing and supplier quality management
with approximately 50 employees. Allocation Network centralizes and
organizes the entire post-contract procurement process of a product
lifecycle using its Supplier Management, Sourcing, Auctions and
Collaboration modules. The company’s integrated cloud-based
solutions are sold to customers including BMW, Denso, MAGNA,
Siemens, VOITH and Volkswagen. With a strong presence in the German
automotive market, Allocation Network enhances QAD’s position in
supporting the world’s fourth largest automotive marketplace.
Allocation Network’s products and services fall into four
strategic areas:
- Supplier Management: Supplier Qualification, Supplier
Classification, Contract Management, Supplier Evaluation, Supplier
Development, and Sourcing Strategies.
- Sourcing: Requisitions, Templates (RFI/RFQ), Bidder
Lists, Submissions, List of Offers, Negotiation, and Awarding.
- Collaboration: Workflow collaboration for
Industrialization, Audits, Supplier Questionnaires, and CSR.
- Auctions: Transfer from Sourcing, Template Design,
Ticker Auction, and English Auction.
About QAD – Enabling the Adaptive Manufacturing
Enterprise
QAD Inc. is a leading provider of adaptive, cloud-based
enterprise software and services for global manufacturing
companies. Global manufacturers face ever-increasing disruption
caused by technology-driven innovation and changing consumer
preferences. In order to survive and thrive, manufacturers must be
able to innovate and change business models at unprecedented rates
of speed. QAD calls these companies Adaptive Manufacturing
Enterprises. QAD solutions help customers in the automotive, life
sciences, consumer products, food and beverage, high tech and
industrial manufacturing industries rapidly adapt to change and
innovate for competitive advantage.
Founded in 1979 and headquartered in Santa Barbara, California,
QAD has 29 offices globally. Over 2,000 manufacturing companies
have deployed QAD solutions including enterprise resource planning
(ERP), demand and supply chain planning (DSCP), global trade and
transportation execution (GTTE) and quality management system (QMS)
to become an Adaptive Manufacturing Enterprise. To learn more,
visit www.qad.com or call +1 805-566-6100. Find us on Twitter,
LinkedIn, Facebook, Instagram and Pinterest.
"QAD" is a registered trademark of QAD Inc. All other products
or company names herein may be trademarks of their respective
owners.
Note to Investors: This press release contains certain
forward-looking statements made under the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995, including,
but not limited to, statements regarding projections of revenue,
income and loss, capital expenditures, plans and objectives of
management regarding the company's business, future economic
performance or any of the assumptions underlying or relating to any
of the foregoing. Forward-looking statements are based on the
company's current expectations. Words such as "expects,"
"believes," "anticipates," "could," "will likely result,"
"estimates," "intends," "may," "projects," "should," "would,"
"might," "plan" and variations of these words and similar
expressions are intended to identify these forward-looking
statements. A number of risks and uncertainties could cause actual
results to differ materially from those in the forward-looking
statements. These risks include, but are not limited to: risks
associated with the COVID-19 (novel coronavirus) pandemic or other
catastrophic events that may harm our business; adverse economic,
market or geo-political conditions that may disrupt our business;
our cloud service offerings, such as defects and disruptions in our
services, our ability to properly manage our cloud service
offerings, our reliance on third-party hosting and other service
providers, and our exposure to liability and loss from security
breaches; demand for the company's products, including cloud
service, licenses, services and maintenance; pressure to make
concessions on our pricing and changes in our pricing models;
protection of our intellectual property; dependence on third-party
suppliers and other third-party relationships, such as sales,
services and marketing channels; changes in our revenue, earnings,
operating expenses and margins; the reliability of our financial
forecasts and estimates of the costs and benefits of transactions;
the ability to leverage changes in technology; defects in our
software products and services; third-party opinions about the
company; competition in our industry; the ability to recruit and
retain key personnel; delays in sales; timely and effective
integration of newly acquired businesses; economic conditions in
our vertical markets and worldwide; exchange rate fluctuations; and
the global political environment. For a more detailed description
of the risk factors associated with the company and factors that
may affect our forward-looking statements, please refer to the
company's latest Annual Report on Form 10-K and, in particular, the
section entitled "Risk Factors" therein, and in other periodic
reports the company files with the Securities and Exchange
Commission thereafter. Management does not undertake to update
these forward-looking statements except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20201216005897/en/
Kara Bellamy Chief Accounting Officer 805.566.6100
investor@qad.com
Laurie Berman PondelWilkinson Inc. 310.279.5980
lberman@pondel.com
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